September 17: Get ready for a big drop—don’t buy the dip. The Fed has begun raising rates by 25%. Compare it with the previous round in 2023: as shown in the chart, both cases saw the market start to fall a number of days later. Then, in the remaining two years, people will start speculating on rate cuts, which kicks off a big bull market.
I’m not afraid the Fed won’t raise rates—I’m afraid it will stop tightening. Only speculation about rate cuts can drive a bull market, just like the previous round’s script.